Asked by: Lord Dobbs (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the total cost to the economy to date of COVID-19-related lockdowns.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Covid-19 pandemic has had a profound effect on the UK economy. Between 2019 Q4 and 2020 Q2, according to the Office for National Statistics the economy contracted by 23% - the steepest recession on record.
The success of the UK’s vaccination campaign lead to a strong recovery in GDP, with annual growth of 7.5% in 2021 and 4.1% in 2022. In both these years, GDP growth in the UK was the fastest in the G7.
The Government acted quickly to prevent catastrophic increases in unemployment during the pandemic. The Government provided up to £400 billion of direct support for the economy which helped to safeguard jobs, businesses and public services in every region and nation of the UK.
The Treasury is engaging constructively with the UK Covid-19 Inquiry, which plans to examine the Government’s responses to the pandemic.